Florida CFO Pushes for Bitcoin in State Pension Funds

Florida Chief Financial Officer (CFO) Jimmy Patronis wants to include Bitcoin (BTC) in the state’s pension fund investments.

To that end, he has sent a formal request to Chris Spencer, the Executive Director of Florida’s State Board of Administration, highlighting the need for a digital currency investment pilot program.

CFO Wants Bitcoin Feasibility Study

In his letterPatronis outlined the rationale behind Bitcoin’s inclusion in the state’s portfolio. He noted Florida’s consistent Triple-A bond rating, record state reserves, and an economy that could see it rank as the 16th-largest globally if it were a country.

According to him, these factors put the state in a great position to consider new investment strategies, with Bitcoin an excellent tool for buffering the volatility often present in traditional asset classes.

He suggested that adding the world’s largest and oldest digital asset to the state’s investment portfolio could offer a safeguard for key public workers by positioning their pensions against broader market instabilities.

“When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling.”

The CFO asked Spencer and the State Board of Administration to assess the feasibility of integrating Bitcoin investments into Florida’s public funds. He stated that such an exploration would determine the risks and advantages associated with the asset and give lawmakers the essential information needed to make an informed decision ahead of the next legislative session.

Proposal Inspired By Donald Trump

To support his proposal, Patronis referenced moves by states like Wisconsin and Michigan, which recently allocated portions of their pension funds to Bitcoin.

Wisconsin invested $164 million in spot Bitcoin ETFs offered by Grayscale (GBTC) and BlackRock (IBIT), which represents just 0.1% of its pension assets. It later added another 447,651 IBIT shares while announcing it had fully divested from Grayscale. Michigan also jumped on the bandwagon, buying shares in ARK 21’s spot Bitcoin ETF.

Similar initiatives have also been launched in other states, including Arizona, where legislators are encouraging pension fund managers to include crypto assets in their portfolios.

Further, the high-ranking state executive name-dropped Donald Trump as an inspiration for his proposal. He cited the Republican presidential candidate’s speech at the 2024 Bitcoin Conference in Nashville, Tennessee, where he put forward the idea of a national strategic Bitcoin stockpile and vowed to push the United States to the helm of the global crypto industry.

Patronis also noted Florida Governor Ron Desantis’ move to reinforce the state’s crypto-friendly stance by enacting legislation against Central Bank Digital Currencies (CBDCs), which he suggested were the opposite of what Bitcoin and other cryptocurrencies stand for.